Macroeconomics Answers

1.In S.A, the largest single component of aggregate expenditure is?
If Namibia's GDP is greater than its GNI, then the income earned by foreign owners of companies 2.and foreign worker in Namibia is________the income earned by Namibians who have invested, or who are working , abroad

2. Show from national income accounting that
a. An increase in taxes(while transfers remain constant) must imply a change in net exports, government purchases, or the saving-investment balance.
b. An increase in disposable personal income must imply an increase in consumption or increase saving.
c. An increase in both consumption and saving must imply an increase in disposable income.

with the aid of a properly labelled diagram, explain the three main characteristics of the consumption function

With the aid of fully labelled diagram explain the general business cycle in the South African economy (5)

Why and how does increase in private saving or decrease in government spending lead to depreciation of exchange rate? Doesn't increase in savings lead to decrease in import and decrease in import leads to decrease in country for foreign currency and that leads to appreciation? Thanks

1. Describe the main instruments of fiscal policy that are available to the government
2. Drawing from the statement above, how can government finance increased expenditure?

Define and explain with an example why firms resort to product differentiation under monopolistic and oligopolistic market structures.

Define, illustrate, and explain with examples market failure in the context of the external costs of production (MSC > MC) of coal fired power station and the external cost of consumption (MSB < MB) of alcohol to the society.

If the economy is near the full-employment level of output, the AD/AS analysis of a change in government spending or taxation will be different from the Keynesian analysis.

True or False

what is the largest single component of aggregate expenditure in sout africa